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Brown, CFA works for an investment counseling firm. Green, a new client is meeting with Brown for the first time. After spending a few minutes
Brown, CFA works for an investment counseling firm. Green, a new client is meeting with Brown for the first time. After spending a few minutes getting acquainted, Brown explains to Green that she has discovered an undervalued stock that offers large potential returns. She recommends that Green purchase the stock. Brown has violated Standard III(C) Suitability. What should she have done differently? Brown should have determined Green's needs, objectives, and risk tolerance prior to making any recommendation. Brown should have more thoroughly explained the characteristics of the stock she was recommending to Green. Brown should have explahed her qualifications and the meaning of the CFA designation to Green
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